dChan - Q Origins Project Archive

More Brazilian fresh beef, pork and poultry is headed to China, thanks to a new partnership announced between JBS S.A. and China's WH Group, a publicly traded Chinese meat and food processing company.

In a statement issued Monday, the two companies said they will offer a portfolio of Friboi and Seara branded products in a deal that could reach $717 million annually. The agreement will allow JBS to have direct access to Chinese consumers through WH Group's 60,000 points of sales across the country. WH Group is the parent of Smithfield Foods Inc.

JBS's first shipments to China under this agreement will start in the first quarter of this year.

“This agreement reflects the maturity and evolution of our trade relations with China,” said Renato Costa, president of Friboi. “It will be an opportunity for us to evolve in our supply chain in an unprecedented business model for JBS.”

Costa said JBS has seen changes in the Chinese consumers' profile regarding protein consumption and a growing concern for food quality, product traceability and enhanced food safety.

“To meet this demand, we have developed on the ground teams, and dedicated partnerships and projects in China," Costa said.

Anonymous ID: 77e48e April 21, 2020, 9:06 a.m. No.8873778 🗄️.is 🔗kun >>3844

>>8873720

see >>8873760

>Deal could be worth $717 million ( JBS WH )

About JBS Packerland

About Jbs Packerland, Inc.

Carnivores have a friend in JBS, the world's largest processor of animal protein. Beef is the company's top product, with major operations in Brazil, as well as the US, Canada, and Australia. it is also a significant producer of pork, poultry, and lamb. In addition to fresh and processed meat, JBS offers cooked and canned meats, ready-to-eat meals, as well as hides and dairy products. Its brands include Seara, Pilgrims's, 1855, Primo, Moy Park, Swith, and Friboi. The company operates worldwide, with the US accounting for more than half of sales. Members of the Batista family are controlling shareholders of JBS through J&F Investments.

Operations

JBS operates through five primary divisions: JBS USA Beef, JBS Brazil, Pilgrim's Pride, JBS USA Pork, and Seara.

JBS USA Beef, the company's largest segment with 40% of sales, includes (unsurprisingly) beef, lamb, and related operations in the US, as well as Canada and Australia. US-focused segments Pilgrim's Pride (about 20% of sales) and USA Pork (more than 10%) are involved in poutry and pork processing, respectively. JBS owns nearly 80% of Pilgrim's Pride.

The company generates about 15% of sales from beef and related products in Brazil through the JBS Brazil segment. Seara, about 10% of sales, provides poultry and pork processing in Brazil.

Geographic Reach

Brazil-based JBS has production facilities and sales offices in about 20 countries through which it serves customers in more than 150 countries. North America accounts for about 60% of sales (with the US alone contributing more than 50%). South America, led by Brazil, accounts for some 15%, followed by Asia (about 15%), Eruope (5%), Australia and New Zealand (nearly 5%), and Africa and the Middle East. The company's geographic diversification is allowing it to withstand a weak environment in its home country of Brazil.

Financial Performance

JBS saw strong growth between 2013 and 2016 with revenue jumping more than 80% during that time. After a year of scandal, revenue fell slightly in 2017.

JBS reported revenue of R$163 billion (about $51.5 billion) in 2017, down about 4% from the prior year amid multiple divestments. The company's Brazilian operations both reported lower sales (particularly JBS Brazil) as the US operations all reported growth.

Strategy

JBS's controlling shareholders, Wesley and Joesley Batista, have been caught up in multiple legal issues, including bribery and insider trading. In 2017 the brothers' investment company, J&F Investments, agreed to a $3.2 billion fine related to the government bribery scandal in Brazil; both Batistas eventually left their positions at JBS and both served jail time in relation to insider trading charges. During this period, JBS was also the target of a probe by the Brazilian federal police for selling rotten and otherwise tainted meat, which resulted in the US and other countries temporarily banning Brazilian beef imports.

Amid the chaos and scandal, JBS naturally took some hits. It was forced to put a corporate restructuring on hold and delay plans to take its US operations public. The company also began streamlining its operations to repay some debt and focus on core growth areas. In 2017 and 2018 it divested holdings in beef subsidiaries in Argentina, Paraguay, and Uruguay, as well as its nearly 20% stake in Brazilian dairy company Vigor Alimentos and the Five Rivers Cattle farm and feedlot in Canada. It also sold European poultry company Moy Park to its majority-owed US subsidiary Pilgrim's Pride for about $1 billion. In addition, because of these issues, JBS has been investing in compliance, food quality and safety, innovation, and global sourcing.

In the meantime, the company continues to focus on its more traditional strategic growth areas of brand and product mix enhancement and exploiting its product and geographic market leadership positions.

>>8873778

Appears to be a lot going on here.

What’s Up With Trump Bailout Money And JBS?

Greg Henderson

May 16, 2019 03:02 PM

Greg-Henderson

JBS USA has received $62 million in federal subsidies through the U.S. Department of Agriculture’s bailout program. That’s about where the accuracy of media reports ended on this story Thursday.

Here’s the headline in The New York Daily News: “Trump administration showers Brazilian crooks with $62M bailout money meant for struggling U.S. farmers.”

Here’s another version from AlterNet: “Trump Administration diverted $62 million from struggling US farmers to corrupt businessmen in Brazil: report.”

Both stories suggest Trump’s team somehow funneled $62 million to the Brazilian Batista brothers like it was a back-alley drug payment. Of course, the fact that JBS SA owners Joesley and Wesley Batista confessed to bribing meat inspectors and other top officials in Brazil in 2017 only added to the stories’ sensationalism.

So, what is really happening here? Through the Trump bailout plan, USDA is buying commodities – such as pork from JBS. The pork – from U.S. plants and produced by American pork producers – likely goes into the school lunch program. According to USDA, JBS USA secured nine contracts for federal purchases of pork since mid-January, totaling 18.5 million pounds for $40.1 million. Previously, JBS was awarded contracts for 9.8 million pounds of pork at $22.3 million. Altogether, USDA bought 28.3 million pounds of pork for about $2.20 a pound. That's not exactly "showering" JBS with money, and does not suggest the money was "diverted."

Purchases of pork by USDA helps American farmers – regardless of whether it’s through JBS or another meat packer. But the idea such purchases go to a foreign firm makes the issue a political football. For instance, last November, Smithfield Foods, owned by a Chinese firm, pulled its bid for $240,000 in pork payments after Sen. Charles Grassley, R-Iowa, echoed criticisms that the payment meant to help local farmers was going to an international firm.

The criticisms of the JBS purchases have triggered Connecticut Congressman Rosa DeLauro (D) to introduce HR-2712, “To require that purchases of agricultural commodities made by the Secretary of Agriculture under the Food Purchase and Distribution Program be from domestically owned enterprises, and other purposes.”

DeLauro’s bill will give Congress a chance to weigh-in on this subject. But whether the bill passes or not, the Trump Administration is not handing out money to foreign firms. USDA is buying commodities that come from American farmers.

https://www.drovers.com/article/whats-trump-bailout-money-and-jbs